What is IPO surplus refund?

The refund of the IPO surplus is the refund of the excess amount that remains after the required amount in the allotment.

When investors apply for an IPO, the application money is blocked from your bank account. At the allotment, investors can either receive a full allotment, partial allotment or no allotment.

In case of full allotment, the entire blocked amount will be debited from the account. In the case of a partial allotment, the account will only be debited for the amount equal to the number of shares allotted. The remaining amount will be released as surplus on the date of refund of the IPO. In case of non-allotment, the entire amount will be returned to the investor.